Software Vendor Management Best Practices
Basic Guide to Software Vendor Management in the SaaS era
Today, with the increasing popularity of the cloud services the number of SaaS vendors continues to grow across organizations. This growth requires businesses to consider a cloud vendor management strategy or a comprehensive solution. This article covers everything you need to know about software vendor management and its best practices.
How Does Vendor Management Changed?
Vendor management has changed drastically during the past decade. Whereas vendor managers used to manage every vendor, vendor relationships are more distributed in the age of SaaS.
While software vendor management does involve searching for a better solution to fix and remove a business problem, it now focuses more on building relationships with SaaS vendors, managing SaaS usage, strategizing renewals of these apps, reporting on value, and optimizing expenses.
Why Does Software Vendor Management Matter?
The increasing adoption of SaaS apps pose a completely different set of challenged that makes it harder than ever for organizations to govern and manage the growing number of SaaS subscription and providers. Here are the most common SaaS challenges:
- Limited visibility into SaaS environment.
The ease of purchase of SaaS applications makes it possible for anyone to deploy and use them. In most cases, SaaS users don’t wait for any approval before using a new application. This leads to sprawl of unknown applications. Therefore, while SaaS boost productivity and flexibility, without a SaaS vendor management solution, it greatly limits app usage and spend visibility.
- Security and compliance risks.
Since there is no full SaaS visibility across organization, unsanctioned applications also increase security and compliance risks. Employees today are using as much application as possible to find solutions to work-related challenges. Hence, without centralized management system, organizations simply can’t ensure security of personal and company information online or ensure regulation compliance of every single license.
- Unused licenses.
Different departments and employees might have dozens of duplicate or unused licenses. In many cases, such licenses could cause overspending of software budgets across organizations. Thus, without proper software insights, organizations can’t stop the prevalence of duplicate or redundant subscriptions.
Which Vendor Management System Should I Choose?
While organizations regularly purchasing new SaaS applications and dealing with new cloud vendors, it’s important to choose a vendor management system that address directly to aforementioned SaaS challenges. Forward-thinking organizations should consider using the most advanced Vendor Management Solution like Binadox. Here are few reasons why:
- Centralize SaaS vendors on one powerful dashboard.
By centralizing all SaaS vendors on Binadox dashboard, you can instantly view who actually uses the vendor, how much, and how often. In addition, it should provide detailed data like source information, spend reports, renewals and more.
- Expense analysis and optimization data.
A modern vendor management system should analyze expenses of every single SaaS license and provide cost optimization data whether it’s necessary. Binadox provides the analytics that helps greatly to discover unused licenses as well as find underused and ineffective subscriptions.
- Vendor Renewals
When you’ve found all of your applications, it’s the time to keep track of their upcoming renewals. Binadox includes a complete renewal calendar that helps to stay ahead of renewals and give you upper hand to your upcoming renewals.
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